Here are the most recent market indicators:
S&P 500 is below its 200-day moving average = Bearish
S&P 500 rose above its 50-day moving average = Bullish
S&P 500 one-month trend = Uptrend (with pivots)
RSI: (S&P 500) @61.98 = Overbought (Bearish)
Daily Intraday Volatility: Moderate to High
Comment: The market fooled nearly everyone by ripping higher for the last two weeks with help from the algos. Nevertheless, volume was light and the bad news swirling around was ignored. It was quite a performance, and short-sellers felt the pain. We are now reaching overbought levels which means that a shorting opportunity is drawing closer.
That being said, never short a market in a strong uptrend (like now). Wait for an intraday reversal or other clues before attempting to short (or buy puts or inverse ETFs).
Futures are lower on Sunday night so we’ll have to wait and see what this market is made of. If the bulls are right, we’ll keep moving higher for the next few days. But the odds are good that within the next week or so, a major shorting opportunity will appear. After all, at the rate the market is rising, unless you believe the indexes can rise by 150% a year, a pullback is coming.
For daily results of multiple indicators, read Yardeni Research: https://goo.gl/eT3fzA
For insightful analysis of the stock market, read Lance Roberts:www.realinvestmentadvice.com
For insightful analysis of economic conditions, read Wolf Richter:www.wolfstreet.com